DRILLING FLUIDS - Scomi

1 DRILLING FLUIDSS comi Oiltools Realising Potential in Oilfield DRILLING SolutionsScomi Oiltools is one of the world s leading providers of innovative high-performance DRILLING FLUIDS and state-of-the-art waste management solutions. The organisation features a highly qualified team of over 2,500 engineers and professionals, with combined experience of over 60 years, spread over 54 locations in 26 countries, plus 24-hour, round-the-clock technical support Oiltools is fully equipped to provide integrated packaged services comprising DRILLING FLUIDS and engineering services, solids control and DRILLING waste management equipment and services to serve the oil and gas industry.

2 Our DRILLING solutions are engineered to achieve optimal results while strictly complying with international environmental standards. Our services include: DRILLING FLUIDS & Engineering Services DRILLING Waste Management Equipment & Services Operations & Maintenance, Project Scomi Oiltools, it is our ultimate goal to help our clients recognise and realise their vast potential. Thereby optimising their productivity and catalysing their businesses to new levels of performance. Scomi Oiltools Realising FLUIDS & ENGINEERING SERVICESS comi Oiltools is a global provider of DRILLING & Completion FLUIDS and DRILLING Waste Management solutions.

3 With the reach of our international infrastructure, and the expertise of our experienced personnel, Scomi Oiltools is able to offer customers the benefits of truly integrated and engineered FLUIDS operations are supported by the Global Research & Technology Centre headquartered in Kuala Lumpur, Malaysia. This centre, led by international experts in their field, provides the technical support to all Scomi Oiltools operations and manages extensive dedicated laboratory facilities with a keen focus on research and development.

4 The centre employs a process-driven framework to ensure consistent best practice in product development, technical troubleshooting, training, procurement and product quality assurance and dedication to service quality has created an increase in the company s business, establishing operations across Asia-Pacific, the Middle East, Europe and the Oiltools is a progressive global service company, moving into new territories, offering performance-driven DRILLING & Completion FLUIDS and DRILLING Waste Management SYSTEMS HYdro-Foil Classic KCl / PHPA system HYdro-Foil Gen 1 Inhibitive, engineered cloud point glycol system HyPr-Drill High Performance Water-Based Mud HYdro-Foil S8 Silicate system HyPr-Foil S8 High-performance silicate system HYdro-Therm High-temperature.

5 High-pressure system oPta-Flo Reservoir drill-in fluid rHeo-PleX MMO system for superior hole cleaningNON-AQUEOUS INVERT EMULSION FLUIDS ConFI-Drill Premium invert emulsion system ConFI-DeNSe High-temperature, high-pressure, oil-based fluid ConFI-DeeP Flat rheology OBM for use in deep water oPta-VerT Reservoir drill-in fluid eXtra-VerT Non-toxic, biodegradable ester chemistryENGINEERING SUPPORT SOFTWARE HyPr-Form Daily reporting HyPr-CAlC Hydraulics modeling softwareDRILLING FLUIDS WATER-BASEDSYSTEMSOur water-based DRILLING fluid systems deliver cost-effective performance with minimal environmental impact.

6 We are a pioneer in developing high-performance systems specially formulated for a myriad of applications even in environmentally sensitive DRILLING SYSTEMSis the original KCI / PHPA low solids, non-dispersedfluid system that is primarily used to drill moderately reactive and BeneFItS Moderately inhibitive water-based FLUIDS . Environmentally acceptable and dischargeable in most areas. Relatively low lubricity coefficients. Easy to mix. Simple and fast to upgrade the inhibition of the system.

7 Two primary shale inhibitors in the system are potassium ions for cation exchange with the clays, to reduce hydration and swelling, and partially hydrolysed polyacrylamide to encapsulate drilled cuttings for more effective solids removal efficiency on surface. In recent times environmental restrictions onshore have restricted the discharge of chloride-based FLUIDS , which has resulted in the use of alternative aqueous-based FLUIDS , including: Potassium sulphate Potassium carbonate Potassium acetate Potassium formateDeveloped in the late 1970s, salt / PHPA systems have been used extensively throughout the world and still have applications in the field INHIBITION OF REACTIVE SHALES IN KCI SOLUTIONKCI (%)INHIBITION (%)

8 806040200 02468 TYPICAL FORMULATION AND PROPERTIES OF A HYdro-Foil SYSTEMPRODUCT KCI / PHPA K2S04 / PHPAD rillwater (bbl/bbl) (lb/bbl) 30 Caustic Soda to pH to pH (lb/bbl) - - (lb/bbl) - LV (lb/bbl) HYDRO-CAP (lb/bbl) (lb/bbl) 71 71 Drilled Solids (lb/bbl) 30 30 PROPERTIESD ensity (lb/gal) Viscosity (cP) +/- 20 +/- 25 Yield Point (lb/100 ft2) +/- 30 +/- 20 Gels (lb/100 ft2) 7 / 10 / 12 10 / 12 / 16 API fluid Loss (cc/30 min)

9 < 5 < 6 WATER-BASED SYSTEMSAs the temperature of the fluid increases, the polyol starts to come out of solution and an otherwise clear liquid starts to become opaque and cloudy . The temperature at which this occurs is usually very precise and is particular to each polyol OF POLYOL BEHAVIOUR AS A FUNCTION OF TEMPERATUREP olyol and water together at ambient temperature; the polyol is 100% water is heated until the polyol reaches cloud point and becomes insoluble. A thermally activated micro emulsion graph overleaf, illustrates the effect of KCI concentration on polyol cloud point, which is also dependent on the total salinity of the solution, type of electrolyte, molecular weight and type and concentration of the range of cloud points the polyol is selected based upon its cloud point, at a specified salinity and the cloud point can be adjusted by altering the salinity of the liquid concludes that the polyol is absorbed by the clay.

10 During the absorption process, water is displaced from the clay surface and ordered structures of polyol are formed. A weak attachment is postulated because of the observation that there is no rapid depletion of the polyol in the DRILLING fluid system. is an established inhibitive water-based fluid designed to meet difficult DRILLING targets with minimal environmental and BeneFItSHYdro-Foil Gen 1 represents a significant advance on the basic HYdro-Foil system. The key enhancement of the Gen 1 system is the addition of low molecular weight polyols, the generic name for a wide range of chemicals which includes glycerol, polyglycerol, polyethylene, glycols, polypropylene glycol, polyalkylene glycols and alcohol ethoxylates.